As Bitcoin (BTC) resumes the downward path it was on for the past several weeks, the flagship decentralized finance (DeFi) asset is threatening to decline even further, with prominent cryptocurrency market expert Michaël van de Poppe noting a key price level it needs to retain to avoid this scenario.
Specifically, van de Poppe has observed that Bitcoin was “still holding onto the range low, but the price action is simply disgusting,” adding that the maiden cryptocurrency needed to stay above $26,100 to avoid a cascade,” as he explained in a tweet shared on June 7.
On the other hand, not all crypto experts see bearishness in Bitcoin’s chart patterns. As it happens, pseudonymous analyst Trader Tardigrade has recently noted that a Bitcoin bull run usually followed a USD index (DXY) peak but that “there has been a missing part in BTC since the peak of DXY was formed in Oct 2022,” suggesting that a late rally could be in store.
Bitcoin price analysis
For now, Bitcoin is still successfully clinging above the critical level that van de Poppe observed, at press time trading at $26,473, recording a 0.45% decline on the day, 1.51% across the past week, and 4.01% on its monthly chart, as per the latest data retrieved on June 8.
Notably, these declines arrive just as it looked that the crypto sector was demonstrating particular resilience in the face of the consecutive lawsuits against two major crypto exchanges – Binance and Coinbase – recently filed by the United States Securities and Exchange Commission (SEC).
That said, when Bitcoin earlier fell below the $26,000 threshold, another crypto trader, Crypto Tony, pointed out that Bitcoin could be heading towards its “final leg down towards $24,500 (…) before we accumulate for a pump to come July / August,” as Finbold reported on June 6.
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Source: https://finbold.com/bitcoin-needs-to-hold-above-this-key-level-to-avoid-a-cascade/